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Iran ignores economic sanctions, ships oil to China

Economic sanctions

Tehran, (Business News Report) – Iran has ignored the economic sanctions imposed by the United States and Western countries, and shipped large quantities of oil to the Chinese market.

According to sources specialized in tracking global crude supplies, Iran was able to circumvent the restrictions of the US embargo and economic sanctions, as it shipped record quantities of oil to China.

A source from shipping company Vortexa Analytics explained that China has dumped nearly four million barrels of Iranian crude into government reserves tanks in the southern port city of Zhanjiang over the past few weeks.

Economic sanctions

This comes as world powers are engaged in difficult negotiations with Tehran to revive the 2015 nuclear agreement and lifting US sanctions on Iranian oil, after the administration of former US President Donald Trump withdrew from the agreement and re-imposed economic sanctions.

Iran, which has the world’s fourth largest oil reserves, relies heavily on crude revenues, but sanctions have prevented it from pumping it at levels close to its production capacity since 2018.

The refilling of China’s strategic petroleum reserves also comes ahead of a plan to draw from its emergency stockpile, in a rare coordination with the United States aimed at helping bring down global oil prices, which hit a seven-year high this week.

In the past, China secretly imported Iranian oil, without official customs data indicating the shipments, with buyers fearing US sanctions.

Last Thursday, Chinese customs announced the first Chinese imports of Iranian crude in a year, despite the ongoing sanctions.

Iranian oil

Data from the General Administration of Customs showed that China imported more than 260.3 thousand tons, equivalent to 1.9 million barrels, of Iranian crude oil last December.

The administration’s last record of Iranian oil flowing into the country was in December 2020, and it was twice the new amount.

A senior trade source familiar with the shipment, unidentified by Reuters, confirmed that China unloaded the shipment at a government reserve site in Zhanjiang in late December 2021.

According to Vortexa Analytics this was followed by unloading a cargo of similar size at the same port for stockpiling.

Tilak Doshi, director at Doshi Consulting in Singapore, told Reuters  that there were reports of Iranian crude imports earlier, but rather discreetly.

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